Carlton chiefs take pay cuts after moderate profit growth

Michael Green, the chairman of Carlton Communications, the media group, was paid almost a quarter less last year than in 1996. Most of his fellow executive directors also took pay cuts after the company produced moderate profit growth and its share price fell. Peter Thal Larsen reports on a rare display of executive pay restraint.

According to figures disclosed in Carlton's annual report, Mr Green received total remuneration of pounds 558,060 last year. That was pounds 169,000 less than in 1996, when his pay reached pounds 727,090. Although Mr Green saw his basic salary increase from pounds 470,000 to pounds 495,000, his annual bonus was cut from pounds 232,250 to just pounds 18,562.

According to the report of Carlton's remuneration committee, the company paid executive directors an annual bonus of just 3.75 per cent of salary last year. The bonus, which can be up to 50 per cent of salary, is related to "year-on-year real growth in earnings per share". Last year, Carlton's earnings per share before exceptional items grew by just 5 per cent as profits were hit by the strong pound and troubles at the company's video production division.

Mr Green was not the only Carlton director to take a pay cut. June de Moller, the managing director, saw her pay total pay fell from pounds 380,278 to pounds 289,091, while finance director Bernard Cragg, the finance director, was paid pounds 252,202 - a drop of 25 per cent.

However, Nigel Walmsley, the director who runs Carlton's Television arm, enjoyed a pay rise. The remuneration committee rewarded him for his "exceptional contribution" in helping British Digital Broadcasting (BDB), Carlton's joint venture with Granada, win the bidding for three terrestrial digital television licences by paying him a discretionary pounds 150,000 bonus. That took his total pay to pounds 423,711 from pounds 363,968 the year before.

Last year was also a poor one for payments under Carlton's long term incentive scheme. The company made no payments at all in 1997, compared to the previous year, when the four current executive directors shared pounds 1.87m, two thirds of which went to Mr Green.

Carlton's incentive scheme awards directors' shares which can be cashed in depending on the company's share price performance over a three year period. If the shares are in the top 25 per cent of FTSE 100 stocks over the period, directors receive the full award. If Carlton finishes in the bottom 35 per cent of its peer group, no bonus is paid.

In 1997, Carlton shares were among the worst performers in the FTSE, falling 9 per cent while the index rose by more than a fifth. Investors are worried that the group's heavy investment in setting up BDB, which is scheduled to start broadcasting in the autumn, will take years to pay off. Meanwhile, it faces competition from the satellite broadcaster BSkyB, which is launching its digital service before the end of June.

Travel
travel
Voices
A family sit and enjoy a quiet train journey
voicesForcing us to overhear dull phone conversations is an offensive act, says Simon Kelner
Arts and Entertainment
The cast of The Big Bang Theory in a still from the show
tvBig Bang Theory filming delayed by contract dispute over actors' pay
Sport
England celebrate a wicket for Moeen Ali
sportMoeen Ali stars with five wickets as Cook's men level India series
PROMOTED VIDEO
News
Morrissey pictured in 2013
people
Life and Style
The director of Wall-E Andrew Stanton with Angus MacLane's Lego model
gadgetsDesign made in Pixar animator’s spare time could get retail release
News
peopleGuitarist, who played with Aerosmith, Lou Reed and Alice Cooper among others, was 71
Travel
travel
News
Robyn Lawley
people
News
people
News
ebookA unique anthology of reporting and analysis of a crucial period of history
News
i100  ... he was into holy war way before it was on trend
Arts and Entertainment
High-flyer: Chris Pratt in 'Guardians of the Galaxy'
filmThe film is surprisingly witty, but could do with taking itself more seriously, says Geoffrey Macnab
News
people
Life and Style
food + drinkVegetarians enjoy food as much as anyone else, writes Susan Elkin
Life and Style
lifeDon't get caught up on climaxing
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

1st Line Support Technician / Application Support

£20000 - £24000 per annum: Harrington Starr: A leading provider of web based m...

Team Secretary - (Client Development/Sales Team) - Wimbledon

£28000 - £32000 per annum: Ashdown Group: Secretary (Sales Team Support) - Mat...

Accountant / Assistant Management Accountant

Competitive (DOE): Guru Careers: We are looking for an Assistant Management Ac...

Senior Investment Accounting Change Manager

£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...

Day In a Page

Save the tiger: The day America’s love of backyard tigers led to a horrific bloodbath

The day America’s love of backyard tigers led to a horrific bloodbath

With only six per cent of the US population of these amazing big cats held in zoos, the Zanesville incident in 2011 was inevitable
Samuel Beckett's biographer reveals secrets of the writer's time as a French Resistance spy

How Samuel Beckett became a French Resistance spy

As this year's Samuel Beckett festival opens in Enniskillen, James Knowlson, recalls how the Irish writer risked his life for liberty and narrowly escaped capture by the Gestapo
We will remember them: relatives still honour those who fought in the Great War

We will remember them

Relatives still honour those who fought in the Great War
Star Wars Episode VII is being shot on film - and now Kodak is launching a last-ditch bid to keep celluloid alive

Kodak's last-ditch bid to keep celluloid alive

Director J J Abrams and a few digital refuseniks shoot movies on film. Simon Usborne wonders what the fuss is about
Once stilted and melodramatic, Hollywood is giving acting in video games a makeover

Acting in video games gets a makeover

David Crookes meets two of the genre's most popular voices
Could our smartphones soon be diagnosing diseases via Health Kit and Google Fit?

Could smartphones soon be diagnosing diseases?

Health Kit and Google Fit have been described as "the beginning of a health revolution"
Ryanair has turned on the 'charm offensive' but can we learn to love the cut-price carrier again?

Can we learn to love Ryanair again?

Four recent travellers give their verdicts on the carrier's improved customer service
Billionaire founder of Spanx launches range of jeans that offers

Spanx launches range of jeans

The jeans come in two styles, multiple cuts and three washes and will go on sale in the UK in October
10 best over-ear headphones

Aural pleasure: 10 best over-ear headphones

Listen to your favourite tracks with this selection, offering everything from lambskin earmuffs to stainless steel
Commonwealth Games 2014: David Millar ready to serve up gold for his beloved Scotland in the end

Commonwealth Games

David Millar ready to serve up gold for his beloved Scotland in the end
UCI Mountain Bike World Cup 2014: Downhill all the way to the top for the Atherton siblings

UCI Mountain Bike World Cup

Downhill all the way to the top for the Atherton siblings
Save the tiger: The animals bred for bones on China’s tiger farms

The animals bred for bones on China’s tiger farms

The big cats kept in captivity to perform for paying audiences and then, when dead, their bodies used to fortify wine
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK

A former custard factory, a Midlands bog and a Leeds cemetery

Introducing the top 50 hidden spots in Britain
Ebola epidemic: Plagued by fear

Ebola epidemic: Plagued by fear

How a disease that has claimed fewer than 2,000 victims in its history has earned a place in the darkest corner of the public's imagination
Chris Pratt: From 'Parks and Recreation' to 'Guardians of the Galaxy'

From 'Parks and Recreation' to 'Guardians of the Galaxy'

He was homeless in Hawaii when he got his big break. Now the comic actor Chris Pratt is Hollywood's new favourite action star